TSMC is expected to spend $10 billion next year in capital works as Apple plans to contract the outfit to build its next-generation processors.

According to the Chinese-language Economic Daily News TSMC has informed the equipment suppliers of its decision to hike capital expenditure for 2013 to US$10 billion. This indicates that TSMC has overcome technical problem with 20nm process, which Apple’s next-generation processors are said to use.

It also suggests that Jobs' Mob is speeding up its reduction of work it gives Samsung. Apple has reportedly sent around 200 design engineers to help TSMC get familiar with the company’s next-generation processor designs at TSMC’s facility in Central Taiwan Science Park.

Pilot production of the processors at TSMC will start in the first half of next year and general production will start in the second half.